Rider

What Does Rider Mean?

A rider is an additional provision that can be added to an insurance policy. Riders enhance coverage in exchange for an increase in the policy’s cost. They allow individuals to customize their insurance policies, enabling them to select the benefits they want while avoiding payment for the riders they don’t need.

Insuranceopedia Explains Rider

Instead of merely adding more coverage, riders provide an additional benefit that enhances the coverage in an insurance policy. For example, a life insurance policy might include an accidental death rider. If the insured dies in an accident, the policy will pay out significantly more than the standard death benefit, often doubling the listed amount. For instance, a $200,000 life insurance policy would pay $200,000 for the death benefit and an additional $200,000 for accidental death.

An accidental death rider is much less expensive than doubling the size of the insurance policy, making it an attractive option for individuals seeking extra coverage at a lower cost.